Taxation Laws Amendment Act (No. 2) 2003 (65 of 2003)

Schedule 2   Exempting compensation for loss of defence remuneration

Income Tax Assessment Act 1997

4   After section 51-30

Insert:

51-32 Compensation payments for loss of deployment allowance for warlike service

A compensation payment for the loss of your deployment allowance for warlike service is exempt from income tax if:

(a) the payment is made under the Safety, Rehabilitation and Compensation Act 1988 in respect of an injury (as defined in that Act) you suffered; and

(b) you suffered your injury while covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936; and

(c) your injury caused the loss of your deployment allowance; and

(d) your deployment allowance was payable under a determination under the Defence Act 1903.

51-33 Compensation payments for loss of pay and/or allowances as a Defence reservist

A compensation payment for the loss of your pay and/or allowances is exempt from income tax if:

(a) the payment is made under the Safety, Rehabilitation and Compensation Act 1988 in respect of an injury (as defined in that Act) you suffered; and

(b) you suffered your injury while serving as a member of the Naval Reserve, Army Reserve or Air Force Reserve (but not while on continuous full time service); and

(c) your injury was the sole or dominant reason for you stopping being a member of that Reserve; and

(d) your pay and/or allowances were payable for service of a kind described in paragraph (b).